Interfront Annual Report 2022

PART C: GOVERNANCE 57 In-Year Management and Monthly and Quarterly Reports The public entity has reported monthly and quarterly, through its shareholder, SARS, to National Treasury, as required by the PFMA. The Committee has reviewed the quarterly management reports of the organisation, as part of the reports provided by the shareholder and is satisfied with the adequacy of information provided by the organisation and to its shareholder. Risk Management Management is responsible for the establishment and maintenance of an effective system of governance relating to, inter alia, risk management and the prevention and detection of fraud and internal controls. Internal Audit was guided by the prevailing section of governance systems which determines the risk profile provided by management in identifying critical audit areas and managements inputs in the formulation of its 3-year strategic and annual plans. The entity has a risk committee that is composed of EXCO members and senior management to fulfil the risk management responsibilities. A risk register is updated quarterly to ensure that all the major risks including emerging risks facing the organisation are effectively managed. The Committee monitors the risk register and management’s progress with regards to the implementation of the risk mitigating actions at its quarterly meetings. The Effectiveness of Internal Audit Internal Audit is responsible for reviewing and providing assurance on the adequacy and effectiveness of the internal control environment across all of the significant areas of the organisation and its operations. The Committee is responsible for ensuring that the organisation’s internal audit function is independent and has the necessary resources, skills, standing, and authority within Interfront to enable it to discharge its responsibilities effectively. The Internal Auditors have unrestricted access to the Committee. The Chief Audit Executive has a direct functional reporting line to the Chairperson of the Committee. The Committee reviews and approves the Internal Audit Plan annually. Internal audit’s activities are measured against the approved internal audit plan and the head: Internal Audit tables progress reports in this regard to the Committee. For the financial year ended 31 March 2022; the Internal Audit function derived at their overall opinion as per the table below which summarises the internal audit overall opinion based on the audit results (Stakeholder Relations Management and Audit of Predetermined Objectives) for the financial year under review: No Process Opinion 1 Process Environment Good The Committee is satisfied that Internal Audit has appropriately discharged its functions and responsibilities in the year under review. Accordingly, the Committee has reviewed the Internal audit charter, approved the audit plan, and deliberated on the quarterly reports as submitted by Internal Audit. 13. AUDIT AND RISK COMMITTEE REPORT (CONT.)